POSITION PAPER
COMMITTEE: UNDP
TOPIC: Ensuring justice and local equity in climate finance and green
transition.
COUNTRY: Canada
TOPIC BACKGROUND:
Climate finance refers to financial resources and instruments that are
used to support action on climate change. Examples of climate finance
include grants provided by multilateral funds, market-based and
concessional loans from financial institutions, governments, and
resources mobilized through carbon trading and carbon taxes. Climate
action investments bring big long-term benefits, but developing
countries still face a large funding gap to support a fair green
transition and build resilience.
It takes place worldwide but particularly in small areas like islands,
developing countries, vulnerable groups, etc. They are usually
affected by floods, rise in sea level, storm and loss of land which
occurs due to climate change. Indigenous people and poor local
groups are mostly faces the biggest challenge during this time as they
have less resources and less power in decision making. Many are
forced to relocation as many big green projects are planned and done
without local people consent.
This topic was important since 1992 when a big global meeting
about the environment held in Brazil. At that summit, countries first
talked about fairness, called CBDR (common but different
responsibilities) – which meant that all countries should help fight the
climate change, but more developed countries should help more
cause they caused more problems.
PAST INTERNATIONAL ACTIONS
Climate finance tools like the Green Climate Fund and the Loss and
Damage Fund was set by the UN and UNDP to help countries deal
with climate change, which Canada supported by giving billions of
dollars to climate funds and working with other countries at COP
(Conference of the Parties) meetings. Still, much climate money goes
to big governments or companies, and not enough reaches local
people and grassroots groups.
DONORS/RECOURCES FOR DEVELOPING COUNTRIES
Some multilateral funds that developing countries can access include
the Green Climate Fund (GCF), the Global Environment Facility (GEF),
and the Adaptation Fund (AF). These funds were established
throughout the years as financial instruments of the United Nations
Framework Convention on Climate Change (UNFCCC) to provide
resources to developing countries.
Countries like the Maldives, for example, consider all finance to be
climate finance since their entire economy and survival is so
dependent on climate resilience.
COUNTRY POLICY
Canada’s foreign policy supports multilateralism (working with other
countries and the UN), gender equality, human rights and indigenous
rights— all of these connects to climate justice. Our government
pledged money to climate funds and we support clean energy in our
country and abroad. Canada’s climate ministers and prime minister
say Canada wants to lead global climate actions and help the most
vulnerable communities adapt and benefit from the green transition.
POSSIBLE SOLUTION
Recent studies show that investments in climate action can yield
results that dramatically outweigh the upfront costs. A study by the
Global Commission on Adaptation found that every $1 invested in five
key adaptation areas could yield $2-10 in total net benefits. At the
same time, there are significant opportunities for the private sector,
with an estimated potential adaptation market of $2 trillion by 2026,
according to the World Economic Forum.
As part of our commitment to the Paris Agreement and the joint
US$100 billion mobilization goal, Canada is providing $5.3 billion in
international climate finance over five years which started in 2021.
Canada’s $5.3 billion will help developing countries already affected
by climate change to transition to sustainable, low-carbon, climate-
resilient, nature-positive and inclusive development. Canada will
increase its proportion of grant funding up to 40%, from 30%
previously. We will support the poorest and most vulnerable by
adopting an inclusive, feminist approach to delivering climate finance,
in recognition that often the most marginalized and vulnerable
people, including women, girls and others, are disproportionately
affected by climate change and biodiversity loss, but also have an
important role to play in contributing to climate action.
Canada wants climate finance system to be simpler as in: less
paperwork, simpler language, less/fairer rules, etc. this will help small
local groups and communities can apply without difficulties. We
believe in giving direct funding to local people and community-led
projects rather than giving it to big companies and national bodies.
Canada expects developed counties to keep their promise like 100
million dollars/year, but obviously depending on their country state.
Canada supports double checking green projects so no local
community is forced to replacement.
FUTURE
Our commitment will also support developing countries to combat
the dual crises of climate change and biodiversity loss, by allocating a
minimum of 20% of its funding to projects that leverage nature-based
climate solutions and projects that contribute biodiversity co-benefits.
Over the next five years, Canada will focus its international climate
finance on four main thematic areas: clean energy transition and coal
phase-out, climate-smart agriculture and food systems, nature-based
solutions and biodiversity, and climate governance. Canada will
continue to support women’s leadership and decision-making in
climate action and ensure that 80% of its projects integrate gender
equality considerations. Green investment target surpassed by 60% in
2020-2021 ... Double the green investment target by 2025-2026 to $50
million per year.
POSITION PAPER RECOURCE:
https://climatepromise.undp.org
https://www.international.gc.ca/world-monde/issues_development-
enjeux_developpement/environment-environnement/climate-
climatique.aspx?lang=eng
